Building and Common Property(Maintenance & Management)_Bill 2006
Typical Cost Common Area Maintenance
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Transcript of Typical Cost Common Area Maintenance
Questions
How long will it take to see a profit?•
With the right start up marketing, you could see a profit within a few months
•
Typical small businesses don’t see a profit for 12 –
18 months–
We only buy what we are pre ordered for
–
Only open the doors when we have a full event. –
Typical cost of food and labor has been about 60% of sales
Exhibit 1 - Complete PowerPoint
INCOME AND EXPENSE FORECAST PROFORMA
Dream Dinners Proforma Statement Scenario 1 Scenario 2 Scenario 3 Scenario 4Gross Sales - $178 per customer 400,000$ 500,000$ 600,000$ 700,000$ Cost of Goods - Approximately $80 per customer 180,000$ 45% 225,000$ 45% 270,000$ 45% 315,000$ 45% GROSS PROFIT 220,000$ 275,000$ 330,000$ 385,000$ Number of customers per month 187 234 281 328
ExpensesLabor - Direct expense of running sessions ($12 hourly) 40,000 10% 50,000 10% 60,000 10% 70,000 10% Direct OperatingRepairs and Maintenance 1,200 1,200 1,200 1200Supplies - Paper 2,400 2,600 2,800 3000Supplies - Cleaning 2,800 2,900 3,000 3100 UtilitiesElectric/Water 6,000 6,000 6,000 6000 Administrative & GeneralBank Fees 900 1,100 1,300 1500Credit Card Discounts 12,000 15,000 18,000 21,000Insurance 2,000 2,500 3,000 3500Licenses 200 200 200 200Office Supplies 2,400 3,200 4,000 4800Professional Fees 2,000 2,000 3,000 3000Taxes - B&O 2,000 2,400 2,800 3500Taxes - Payroll (May vary from state to state) 9,000 12,000 14,000 16000Telephone 2,700 2,900 3,200 3500 Franchise FeesRoyalty 24,000 6% 30,000 6% 36,000 6% 42,000 6%Marketing - 2% or $800 minimum 9,600 2% 10,000 2% 12,000 2% 14000 2% OccupancyRent 14,400 14,400 14,400 14400CAM - Common Area Maintenance 3,600 3,600 3,600 3600 Optional ExpensesLaundry - Optional 2,400 2,400 2,400 2400Media - Optional Additional Advertising 5,000 5,000 5,000 5000
Total Expenses 144,600 169,400 195,900 221,700
Store Level Operating Profit * 75,400$ 18.85% 105,600$ 21.12% 134,100$ 22.35% 163,300$ 23.33%Number of customers per month 187 234 281 328
* Owner/operator may choose to utilize themselves as labor, at which point labor expense and all associated expenses may increase or decrease.
Income & Expense Forecast Proforma
Exhibit 1 - Complete PowerPoint
#1
187 Customers/MonthDream Dinners Proforma Statement Scenario 1 %Sales
Number of customers per month 187
Gross Sales - $178 per customer 400,000$
Cost of Goods - Approximately $80 per customer 180,000 45% GROSS PROFIT 220,000$
Expenses
Labor - Direct expense of running sessions ($12 hourly) 40,000.00$ 10%
Direct Operating
Repairs and Maintenance 1,200
Supplies - Paper 2,400
Supplies - Cleaning 2,800
Utilities
Electric/Water 6,000
Administrative & General
Bank Fees 900
Credit Card Discounts 12,000
Insurance 2,000
Licenses 200
Office Supplies 2,400
Professional Fees 2,000
Taxes - B&O 2,000 Exhibit 1 - Complete PowerPoint
#2
187 Customers/MonthDream Dinners Proforma Statement Scenario 1 %Sales
Number of customers per month 187
Taxes - B&O 2,000
Taxes - Payroll (May vary from state to state) 9,000
Telephone 2,700
Franchise Fees
Royalty 24,000 6%
Marketing - 2% or $800 minimum 9,600 2%
Occupancy
Rent 14,400
CAM - Common Area Maintenance 3,600
Optional Expenses
Laundry - Optional 2,400
Media - Optional Additional Advertising 5,000
Total Expenses 144,600.00$
Store Level Operating Profit * 75,400$ 18.85%
Number of customers per month 187* Owner/operator may choose to utilize themselves as labor, at which point labor expense and all associated expenses may increase or decrease. Exhibit 1 - Complete PowerPoint
#1
234 Customers/MonthDream Dinners Proforma Statement Scenario 2 %Sales
Number of customers per month 234
Gross Sales - $178 per customer 500,000$
Cost of Goods - Approximately $80 per customer 225,000 45% GROSS PROFIT 275,000$
Expenses
Labor - Direct expense of running sessions ($12 hourly) 50,000.00$ 10%
Direct Operating
Repairs and Maintenance 1,200
Supplies - Paper 2,600
Supplies - Cleaning 2,900
Utilities
Electric/Water 6,000
Administrative & General
Bank Fees 1,100
Credit Card Discounts 15,000
Insurance 2,500
Licenses 200
Office Supplies 3,200
Professional Fees 2,000
Taxes - B&O 2,400 Exhibit 1 - Complete PowerPoint
#2
234 Customers/MonthDream Dinners Proforma Statement Scenario 2 %Sales
Number of customers per month 234
Taxes - B&O 2,400
Taxes - Payroll (May vary from state to state) 12,000
Telephone 2,900
Franchise Fees
Royalty 30,000 6%
Marketing - 2% or $800 minimum 10,000 2%
Occupancy
Rent 14,400
CAM - Common Area Maintenance 3,600
Optional Expenses
Laundry - Optional 2,400
Media - Optional Additional Advertising 5,000
Total Expenses 169,400.00$
Store Level Operating Profit * 105,600$ 21.12%
Number of customers per month 234* Owner/operator may choose to utilize themselves as labor, at which point labor expense and all associated expenses may increase or decrease. Exhibit 1 - Complete PowerPoint
#1
281 Customers/MonthDream Dinners Proforma Statement Scenario 3 %Sales
Number of customers per month 281
Gross Sales - $178 per customer 600,000$
Cost of Goods - Approximately $80 per customer 270,000 45% GROSS PROFIT 330,000$
Expenses
Labor - Direct expense of running sessions ($12 hourly) 60,000.00$ 10%
Direct Operating
Repairs and Maintenance 1,200
Supplies - Paper 2,800
Supplies - Cleaning 3,000
Utilities
Electric/Water 6,000
Administrative & General
Bank Fees 1,300
Credit Card Discounts 18,000
Insurance 3,000
Licenses 200
Office Supplies 4,000
Professional Fees 3,000
Taxes - B&O 2,800 Exhibit 1 - Complete PowerPoint
#2
281 Customers/MonthDream Dinners Proforma Statement Scenario 3 %Sales
Number of customers per month 281
Taxes - B&O 2,800
Taxes - Payroll (May vary from state to state) 14,000
Telephone 3,200
Franchise Fees
Royalty 36,000 6%
Marketing - 2% or $800 minimum 12,000 2%
Occupancy
Rent 14,400
CAM - Common Area Maintenance 3,600
Optional Expenses
Laundry - Optional 2,400
Media - Optional Additional Advertising 5,000
Total Expenses 195,900.00$
Store Level Operating Profit * 134,100$ 22.35%
Number of customers per month 281* Owner/operator may choose to utilize themselves as labor, at which point labor expense and all associated expenses may increase or decrease. Exhibit 1 - Complete PowerPoint
#1
328 Customers/MonthDream Dinners Proforma Statement Scenario 4 %Sales
Number of customers per month 328
Gross Sales - $178 per customer 700,000$
Cost of Goods - Approximately $80 per customer 315,000 45% GROSS PROFIT 385,000$
Expenses
Labor - Direct expense of running sessions ($12 hourly) 70,000.00$ 10%
Direct Operating
Repairs and Maintenance 1200
Supplies - Paper 3000
Supplies - Cleaning 3100
Utilities
Electric/Water 6000
Administrative & General
Bank Fees 1500
Credit Card Discounts 21,000
Insurance 3500
Licenses 200
Office Supplies 4800
Professional Fees 3000
Taxes - B&O 3500Exhibit 1 - Complete PowerPoint
#2
328 Customers/MonthDream Dinners Proforma Statement Scenario 4 %Sales
Number of customers per month 328
Taxes - B&O 3500
Taxes - Payroll (May vary from state to state) 16000
Telephone 3500
Franchise Fees
Royalty 42,000 6%
Marketing - 2% or $800 minimum 14000 2%
Occupancy
Rent 14400
CAM - Common Area Maintenance 3600
Optional Expenses
Laundry - Optional 2400
Media - Optional Additional Advertising 5000
Total Expenses 221,700.00$
Store Level Operating Profit * 163,300$ 23.33%
Number of customers per month 328* Owner/operator may choose to utilize themselves as labor, at which point labor expense and all associated expenses may increase or decrease. Exhibit 1 - Complete PowerPoint
Questions
What other costs might you have?•
Leasehold improvements–
Will depend on size of your space and what needs to be done to it
–
Have averaged $50,000 -
$100,000 for our stores
•
Approved Equipment Package-
$35,000–
Covers all major store equipment
–
Most franchisees have sourced a lease 3 years common
Exhibit 1 - Complete PowerPoint
Questions
What other costs might you have? (cont)•
Cash reserves to meet several months of expenses (To be determined prior to package submission)
•
Architectural Fees and permits feesSignage Requirements and permits
•
Décor PackageArtwork and Bar Stools…
•
Logo Package–
Aprons, Coolers, Shirts, Mugs, Door Mats…
Exhibit 1 - Complete PowerPoint